Taxation

Body Corporate Managers are to ensure that all statutory taxation obligations of the body corporate are complied with each financial year (In Australia this period is from the 1st July to the 30th June).

Lot owners should also note that under Australian Tax Law (Income Tax Ruling #2505) if there are occasions where a body corporate is in receipt of non-mutual income and it is derived from the rental of any part or item of common property, for example rental from a telecommunications device on the roof, then the income received is taxable in the hands of the lot owner at the lot owner’s personal tax rate. Body corporate bank accounts that earn Interest earned on accumulated funds in the sinking fund account is also taxable income at the company rate of tax. For further advice or explanation please refer to your own adviser or accountant.